GM Volt Forum banner

1 - 20 of 41 Posts

·
Registered
Joined
·
1 Posts
Discussion Starter #1
Hello everyone,
I just purchased my first Chevy Volt (2017) last week. I'm really excited to pick it up and get it on the road. But i'm debating whether or not to purchase the extended warranty. I'm just not sure if it's worth the $3000 Canadian the dealer is charging. It would cover almost everything on the car for 7 years (4 years without manufacturer's base warranty). Since the Volt has many electronic components and sensors on it, I know repairing them would probably cost a decent penny. If you guys could give me any advice, it would be really appreciated.


Jesse
 

·
Administrator
Joined
·
20,222 Posts
It's likely that most will spend more than they will save. Insurance companies are like casinos, the house usually wins. However, I viewed it like fire insurance for my home. I have never, ever had a fire. So is the money wasted?
 

·
Registered
Joined
·
13,672 Posts
Put $3000 Canadian into a bank account and mutual fund, and the odds are that you will come out ahead because your aren't paying warranty company fees and salaries. Warranty companies almost always make money because on average the costs across all people buying extended warranties is far less than what they actually pay out. of course, if you are one of those unlucky ones... well the powertrain warranty far exceeds ten bumper to bumper warranty anyway. I have never owned a vehicle extended warranty and even with the maintenance and repair costs that I have paid after the power warranty has expired, I'm still way ahead. YMMV
 

·
Registered
Joined
·
13,672 Posts
It's likely that most will spend more than they will save. Insurance companies are like casinos, the house usually wins. However, I viewed it like fire insurance for my home. I have never, ever had a fire. So is the money wasted?
The difference here is if my volt burns up to a crisp, it's covered by my car insurance and I can afford to get a new car even if it wasn't covered. in the case of a house, I would get insurance because I cannot afford to replace the house with money I had on hand or can earn. I would buy homeowners insurance, but I would not buy a house warranty from the contractor.
 

·
Registered
Joined
·
2,089 Posts
I paid for as much warranty as I could get when I bought my car. It was the first time I had ever bought an extended warranty. So far (close to 5 years) I have not made a single claim. What I bought was peace of mind with unknown technology and a manufacturer I had, at that point, every reason not to trust. I'm glad to have gambled and lost on that count.

It's your choice - Steverino and Ilninja have the logical answer, only you can decide how risk-averse you are.
 

·
Registered
Joined
·
473 Posts
Personally I would just put the money away in a bank account or safe investment and use it that way, as mentioned the system is rigged to allow the house (insurance group) to win.
 

·
Registered
Joined
·
3,722 Posts
I think I'd want to understand better what "almost everything" means. The Voltec stuff is covered for 8yrs. and 100k miles so what is the extended warranty covering?
 

·
Registered
Joined
·
707 Posts
There are plenty of insurance companies that actually operate with an underwriting loss, meaning they pay out more than $1 in claims for every $1 they bring in in premiums. So how do they stay in business? Investment income. Like what was mentioned above, invest the $3k. You know you won't have to pay out the first three years and if you need to start paying out after that, you'll be ready.
 

·
Registered
Joined
·
1,120 Posts
I definitely see the points against buying an extended warranty for a vehicle, however, the peace of mind can make it worthwhile to some degree. I purchased my '13 at the end of August from a private seller. It was a higher mileage car with 93K but had a full service history and the owner also included the balance of a GMPP major guard plan that she purchased shortly after buying the car new with remaining coverage until 4/18 or ~111K miles.The unexpected inclusion of that warranty made the purchase an absolute "no-brainer" for me when taking into account the asking price as well as the added extended warranty which is basically bumper to bumper coverage. FWIW, the warranty actually has been used a couple times since I bought....the day I bought, the RKE transmitter failed and they replaced the key, and a month later I had the drivers side window regulator fail and they covered that, all without deductible.

I guess the point I'm making is, if you intend to keep the car beyond the time/mileage limits of the extended warranty, probably best to save the money aside for any necessary repairs. However, if you don't plan to keep it, it can be a great addition when it comes time to sell since many of them are transferable to the new owner for a small fee (GMPP was $50).
 

·
Registered
Joined
·
13,672 Posts
I definitely see the points against buying an extended warranty for a vehicle, however, the peace of mind can make it worthwhile to some degree. I purchased my '13 at the end of August from a private seller. It was a higher mileage car with 93K but had a full service history and the owner also included the balance of a GMPP major guard plan that she purchased shortly after buying the car new with remaining coverage until 4/18 or ~111K miles.The unexpected inclusion of that warranty made the purchase an absolute "no-brainer" for me when taking into account the asking price as well as the added extended warranty which is basically bumper to bumper coverage. FWIW, the warranty actually has been used a couple times since I bought....the day I bought, the RKE transmitter failed and they replaced the key, and a month later I had the drivers side window regulator fail and they covered that, all without deductible.

I guess the point I'm making is, if you intend to keep the car beyond the time/mileage limits of the extended warranty, probably best to save the money aside for any necessary repairs. However, if you don't plan to keep it, it can be a great addition when it comes time to sell since many of them are transferable to the new owner for a small fee (GMPP was $50).
The window regulator and rke transmitter cost far less than the original cost of that extended warranty. And the original owner took a bath buying a new car, buying an extended warranty, then selling the car used.
 

·
Registered
Joined
·
1,120 Posts
I don't disagree....and those two items were within a month of each other and without going through the service history I cant say if it was used in addition to those events. I do however know that the original owner paid far less than the $3000 that many on here quote as I have the original paperwork that indicates her cost as about 1/2 that which other are being quoted ($1445). My suggestion is to perhaps shop other dealerships if you really want to buy an extended warranty as it's not like going to Best Buy and paying a flat rate and other dealerships may have better offers available.
 

·
Premium Member
Joined
·
14,156 Posts
Don't buy it now. Since the plan starts from when you buy it, getting a 3 year plan when you buy the car gives you absolutely nothing. So wait at least a year. or even three. Then shop around -- any dealer can sell you a plan -- and then decide. Lots of choices BTW and you haven't mentioned the details of the plan. I got an extended service plan until the car is 10 years old for $2000.
 

·
Registered
2016 Volt Premier, delivered Oct/15
Joined
·
661 Posts
I negotiated my 7 year extended GM warranty when I bought the car and paid a less than the $3k mentioned. Mine had the $100 deductible. Kept saying no to the total price of the warranty until it came down to a reasonable level. If your dealer won't do this, try another dealer who wants your business.
 

·
Registered
Joined
·
902 Posts
If you keep a zero balance on all of your credit cards, have already contributed your maximum to your Roth IRA or standard IRA, and have a hefty amount of reserves in the stock market to cover at least six months of your salary, then you can afford to waste $3,000 on Volt warranty costs. However, the rational decision is investing the $3,000 in a quick-access, balanced investment mutual fund.
 

·
Registered
Joined
·
242 Posts
I hate having the company I bought the extended warranty from (on any product) finding reasons not to honour the warranty, and the emotional hassle in have to fight to fulfill the supposed 'peace of mind' brought about. Thus, i set the money aside, and DO NOT take extended warranties. It's just too much potential hassle.
 

·
Premium Member
Joined
·
14,156 Posts
If you keep a zero balance on all of your credit cards, have already contributed your maximum to your Roth IRA or standard IRA, and have a hefty amount of reserves in the stock market to cover at least six months of your salary, then you can afford to waste $3,000 on Volt warranty costs. However, the rational decision is investing the $3,000 in a quick-access, balanced investment mutual fund.
Actually I look at this the opposite way. People who have resources don't need to worry about unexpected repairs. They can just pay to have them done. People on tight budgets may not be able to come up with the cash. To some extent the extended service plans are insurance, and the people most in need of insurance are those who can't afford the loss.

Once you recognize that extended service plans are insurance, if we take your approach that an extended service plan is a waste of money, then homeowners insurance, medical insurance, and car insurance are also a waste of money. They all work the same way. The big deal is that you need to shop around.

My rule is that I don't buy extended service plans unless I do. LOL Just depends on the situation, which means the risk and the premium. I bought one for the Volt and I'm good with that. If nothing else I can get most of what I paid for it when I sell it -- a six year old Volt with a four year warranty is more attractive than a six year old Volt without. I also bought some plans for some camera equipment. I use the equipment hard in some harsh environments and the plans didn't cost much. Again, it just depends on your evaluation of the risk and the cost of the premium.

I hate having the company I bought the extended warranty from (on any product) finding reasons not to honour the warranty, and the emotional hassle in have to fight to fulfill the supposed 'peace of mind' brought about. Thus, i set the money aside, and DO NOT take extended warranties. It's just too much potential hassle.
I'd only buy a GM or GMPP service plan. Wouldn't think about plans offered by anything other than the top tier companies. Otherwise, as you're pointing out, you run a risk the company won't be around or, if it is, that it won't perform. With respect to performance, I don't believe we have had anyone post about having an extended service plan which wasn't honored. We have had many who haven't bought the service plan but who want GM to fix things on cars which are well out of warranty. Also you have to understand that an extended warranty doesn't cover things like brakes, 12v batteries, and wipers. Otherwise you'll be disappointed.
 

·
Registered
Joined
·
520 Posts
... I'd only buy a GM or GMPP service plan. ...
Don, I think the best plan currently offered by GM, and more importantly, owned by GM, is actually the GMEPP plan. (Specifically, their Platinum plan). If I'm not mistaken, the GMPP plan is not owned by GM anymore (it's now under Ally Bank).

Also, for those considering a warranty, there are a few GM dealerships that (quite reputably) sell extended warranties at very low prices online. The two that seem to have the best reputation and pricing are:

http://www.gmoutlet.com/gmepp.html
http://www.dennymenholt.com/Protect...ectedCriteria=Extended Protection: Protection


.02
 

·
Registered
Joined
·
13,672 Posts
I hate having the company I bought the extended warranty from (on any product) finding reasons not to honour the warranty, and the emotional hassle in have to fight to fulfill the supposed 'peace of mind' brought about. Thus, i set the money aside, and DO NOT take extended warranties. It's just too much potential hassle.
I just love all the junk mail I have gotten from companies with odd nondescript names trying to fool you into thinking this is a factory policy. Looking at the coverage, it's really interesting to see all the items they list, but traction battery, inverter, and electric motors are not listed at all.

But to bring this to a wider scope, I don't buy extended warranties for anything. No AppleCare. Not at Best Buy. Nothing.
 

·
Registered
Joined
·
13,672 Posts
Actually I look at this the opposite way. People who have resources don't need to worry about unexpected repairs. They can just pay to have them done. People on tight budgets may not be able to come up with the cash. To some extent the extended service plans are insurance, and the people most in need of insurance are those who can't afford the loss.

Once you recognize that extended service plans are insurance, if we take your approach that an extended service plan is a waste of money, then homeowners insurance, medical insurance, and car insurance are also a waste of money. They all work the same way. The big deal is that you need to shop around.

My rule is that I don't buy extended service plans unless I do. LOL Just depends on the situation, which means the risk and the premium. I bought one for the Volt and I'm good with that. If nothing else I can get most of what I paid for it when I sell it -- a six year old Volt with a four year warranty is more attractive than a six year old Volt without. I also bought some plans for some camera equipment. I use the equipment hard in some harsh environments and the plans didn't cost much. Again, it just depends on your evaluation of the risk and the cost of the premium.

I'd only buy a GM or GMPP service plan. Wouldn't think about plans offered by anything other than the top tier companies. Otherwise, as you're pointing out, you run a risk the company won't be around or, if it is, that it won't perform. With respect to performance, I don't believe we have had anyone post about having an extended service plan which wasn't honored. We have had many who haven't bought the service plan but who want GM to fix things on cars which are well out of warranty. Also you have to understand that an extended warranty doesn't cover things like brakes, 12v batteries, and wipers. Otherwise you'll be disappointed.
Part of the point here is learning and deciding how you should best use your money (which will be different for different people). People who don't have $3000 saved for a rainy day really have no business buying a new car they cannot afford, thus the extended warranty conversation doesn't even start. Even worse is financing the extended warranty.

If you spend your whole life getting new cars, adding $3K extended warranties on those cars, and always living paycheck to paycheck, you will never get rich trying to out-earn your spending habits. Putting $3K into a car repair fund is tough, you have to be disciplined to really do it and not be tempted to buy a bass boat or a dining room set with that money sitting around. Similarly, not buying a new car until you've saved enough money to pay cash for it is also tough, especially with all the low lease and low interest rate financing deals available.
 

·
Administrator
Joined
·
20,222 Posts
Just as point of reference, I bought an extended GMPP on my Volt when no one knew how the car would perform or hold up with all it's electronics, etc. So I spent about $2000 for $0 deductible and extended my warranty until 1/20/2017 or 111,170 miles whichever came first. Well, I was off on my date as I'm only at 85,000 miles.

Anyway, I had to use the warranty last week for a $200 passenger seat heater replacement. Yes, I would have been better keeping my $2000 and spending $200 out of pocket.
 
1 - 20 of 41 Posts
Top